MonopolyMonopoly is that market from in which the single producer controls the whole supply of a single commodity that has no close substitutes.
Two points must be noted in regard to the definition. First there must be an individual owner it seller if. There will be monopoly. That single producer may be individual owner or group of partners or a joint stock company or any other combination of producers of the state. Hence there must be a sole producer or seller in the market if it is to be called monopoly.
Secondly, the commodity produced by the producer must have no close substitutes. Competing if he is to be called a monopolist this ensures that there must no rival of the monopolist. By the absence of closer substitutes we mean that there are no other firms producing similar products or product varying only slightly from that of the monopolist.
The above two conditions ensure that the monopolist can set the price of his product and can pursue an independent price policy.
“POWER TO INFLUENCE PRICE IS THE VERY ESSENCE OF MONOPOLY.”